Oman’s Power Sector Reached New Milestone Amid Rising Demand

Oman’s electricity sector achieved a record-breaking 12.6% increase in total power generation by the end of May 2025, reaching 18,948.9 GWh - up from 16,829.3 GWh a year earlier.

According to data released by the National Centre for Statistics and Information (NCSI), this growth reflected rising national demand, sustained infrastructure development, and investments aligned with Oman Vision 2040. Net electricity generation, representing actual consumption, also rose by 13.1% to 18,483.1 GWh over the same period.

Most governorates witnessed positive gains in power generation. Musandam saw the highest increase at 19.2%, followed by Al Dakhiliyah and Muscat with 1,760.7 GWh and 116.7 GWh respectively. The North and South Al Sharqiyah region generated 3,831.7 GWh (up 4.1%), while combined production from North and South Al Batinah with Al Dhahirah reached 10,501.6 GWh, a 1.3% rise. These numbers pointed to steady expansion across key regions supporting residential, commercial, and industrial demand.

However, regional disparities were evident. Dhofar experienced a 4% drop in electricity generation, falling to 2,281.5 GWh, while Al Wusta saw a slight decline of 0.7% to 60.4 GWh. These declines highlighted localised shifts in demand, energy mix, or grid dynamics that may require targeted investment or policy adjustments in the near term.

While electricity output surged, water production declined by 0.9% year-on-year, dropping to 206.6 million cubic meters. This slight decrease possibly reflected seasonal variability or improved efficiency in resource use. Overall, Oman’s energy sector remained on an upward trajectory, with growing renewable integration - reportedly over 11% of the energy mix - and strategic efforts helping the Sultanate position itself as a regional leader in sustainable power generation.

Rising Omani power demand reshapes what Scope 2 disclosure for corporates operating in the country looks like, and it makes renewable-procurement decisions materially more consequential than they were a few years ago. Our energy-transition and market-intelligence teams help clients evaluate Omani PPA and green-power procurement optionality.